Airline Stocks Get Rattled
On AMR Bankruptcy Fears

By

Scott

McCartney and

Mitchell Pacelle Staff Reporters of The Wall Street Journal

Updated March 12, 2003 12:01 a.m. ET

Shares of American Airlines parent AMR Corp. dropped 34% on fresh worries that it might be forced to file for bankruptcy-court protection. Other carriers' shares also fell as an industry group predicted at least $4 billion in added losses at airlines if there is a war with Iraq.

Weighing heavily on the market were several financial warnings. Delta Air Lines, the nation's third-largest carrier, reduced its operating cash-flow outlook because of concerns over a war with Iraq. The Atlanta-based company said it expects...